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Govt notifies energy tariff aid for main exporters

by Pakistan Latest News Update



ISLAMABAD: The federal government has notified a aid bundle for the 5 main export-oriented industries that can obtain electrical energy at a subsidised price.

In line with a notification issued on Friday, the 5 export-oriented industries will probably be equipped electrical energy at 7.5 US cents per unit inclusive of all taxes and duties.

Beneath this bundle, the industries embrace textile, carpets, leather-based, sports activities and surgical items. The bundle will probably be relevant from January 1, 2019 to June 30, 2020.

The finance ministry will launch Rs23 billion below this bundle, which is prone to proceed in subsequent monetary yr 2020-21 as effectively with proposed subsidy of Rs20 billion.

The ECC of the cupboard had authorized the aid bundle for the export-oriented industries on March 11, 2020.

Within the wake of the COVID-19 outbreak, the Ministry of Vitality, in a separate notification, directed all the ability distribution firms to increase the date for submission of excellent electrical energy payments for March until April 7, 2020. Electrical energy customers may even be exempt from any late fee surcharge.

These industries have been dedicated a set all-inclusive tariff of seven.5 US cents per unit (kWh) and a suggestion was submitted for consideration of the ECC.

The financial decision-making physique agreed that the 5 main export sectors could be offered electrical energy at an all-inclusive price of seven.5 cents per unit from January 1, 2019 to June 30, 2020.

The electrical energy payments issued from January 2019 thus far, which included surcharges, quarterly changes, gasoline value changes and Neelum-Jhelum surcharge, could be adjusted with a set tariff of seven.5 cents per unit.

The Finance Division can pay Rs23 billion in subsidy in FY20 to the Energy Division within the first week of July 2020. An quantity of Rs14 billion, out of the overall of Rs23 billion, will probably be paid out of the Rs24-billion price range allocation for the gasoline sector whereas Rs9 billion will probably be offered by financial savings below numerous heads or financial savings below the Public Sector Improvement Programme (PSDP).

For continuation of the aid bundle in subsequent fiscal yr 2020-21, the subsidy will probably be capped at Rs20 billion. 

Revealed in The Specific Tribune, March 28th, 2020.

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